Supermarket trading woes have hit business at Premier Foods, owner of iconic brands including Mr Kipling, Bisto and Ambrosia.

The grocers who sell Premier products are facing the slowest rate of growth in the British market since 2005 - illustrated by a profit warning from market leader Tesco yesterday - amid fierce competition from discount chains, changing customer habits and a squeeze on household budgets.

Premier blamed 'challenging market conditions' and warmer weather over the first six months of 2014 for a slide in pre-tax profits and declining sales of its products.

Marketing drive: Mr Kiplings cakes will get a major relaunch this year, including TV ads

Price inflation in the company's markets has also fallen every month since the start of the year, with consumers switching away from traditional retailers towards 'hard' discounters selling 75-90 per cent private label products.

St Albans-based Premier previously decided to end 'deep-cut, loss-making promotions', but it announced a doubling of marketing spend in the current half year and a major relaunch of Mr Kipling today.

The campaign will include a new packaging design, as well as a major TV advertising campaign with prime-time slots alongside outdoor and social media.

The second half of the year will see a number of other product launches, including Bisto gravy and casserole pastes, Batchelors deli-box cous cous, Sharwood's mini poppadoms and Cadbury sponge pudding desserts.

There will also be a first major TV advertising campaign for Homepride sauces in 10 years to support its recent packaging re-design and new flavours.

Premier said the UK's 'ambient grocery market' - food that can be kept on the shelf but needs to be refridgerated when opened - decreased in value by 1.3 per cent in the first half of the year.

But it added that the most significant element of the market decline was caused by milder weather, with 20 of the 26 weeks in the first half recording higher average temperatures than their respective weeks in the prior year.

'Volume movements in the company's categories are particularly sensitive to changes in temperature, with Flavourings & Seasonings and Easy Eating being particularly affected,' said the company. 'The warm weather at Easter, which fell late this year, also resulted in a lower than expected seasonal uplift.'

This impacted its Batchelors brand while Sharwood's sales were also lower due to competitive pressures. Loyd Grossman sauces continued their good performance and Bisto grew both share and sales.

Mr Kipling increased its share of the cake market to 26 per cent, helped by increased sales of its Snackpack slices.

Lower sales volumes were offset in part by a raft of cuts to manufacturing and procurement costs.

Premier's adjusted pre-tax profits fell 16 per cent to £17.8million in the first six months of 2014, with sales 6.1 per cent lower at £364.4million.

'We are adapting quickly to the changing external environment through retaining a tight control of costs and margins and have a strong programme of consumer marketing and new product introductions planned for the second half of the year,' said boss Gavin Darby.

Iconic brands: Bisto will be included in the big marketing push later this year

'Assuming normal weather patterns, we expect an improved second half branded sales performance and our trading profit expectations for the year remain unchanged.'

Darby added the firm remained convinced of the medium and long-term potential for its brands to deliver profitable growth.

Premier shares rose 0.63p to 47.13p in early trading as the City welcomed its plans to revive the business.

Income shares watch: Premier does not pay a dividend.

View from the City

'Premier has delivered slightly better first half trading profit than we were expecting,' said Nicola Mallard at Investec.

'The group had already flagged the difficult revenue background and we had assumed a small decline in first half trading profit of £47.1million last year, but the group delivered £48.1million. This showed a 1 per cent increase in margins to 13.1 per cent as cost savings were delivered.

'Revenues were 6.1 per cent lower overall, which was in line with our forecasts, and, within this, the power brands were 4.9 per cent down.

'Factors behind this include warner first half weather, the growth of the discounters (who sell largely private label) and also a reduction in deep discount promotions by Premier.'

Stock watch: Premier shares have failed to recover since the financial crisis